Eyeing global scale and near-term earnings synergy upward of $120 million, Westport, Conn.-based Terex Corp. and Konecranes Plc of Helsinki plan an all-stock “merger of equals,” creating a company whose 2014 revenues totaled about $10 billion. Terex and Konecranes shareholders will own approximately 60 percent and 40 percent of the combined business, respectively, which will operate as Konecranes Terex Plc, with headquarters in Finland and major corporate functions in Connecticut.

The combination unites what officials note are two complementary leaders in cranes, materials handling, and equipment servicing solutions. Konecranes Terex will log about 37 percent of sales in the Americas and a near-equal share in Europe, the balance derived from the rest of the world. Construction will represent a projected 8 percent of the overall combined business, against 11 percent under Terex Corp.

“This merger brings together two great businesses and through synergies provides another lever that is within our control to deliver value-creation to shareholders,” says Terex CEO Ron DeFeo, who will maintain his title with Konecranes Terex. “We have a deep respect for Konecranes and look forward to joining forces with them to build a stronger and more diverse company that will be in an excellent position to succeed in a dynamic and highly competitive global industry.”

“With a focus on lifting and material handling solutions, Konecranes Terex will be in an excellent position to deliver enhanced growth in revenue and margins through several strategic advantages, including significant cross-selling opportunities,” adds Konecranes Chairman Stig Gustavson, whose title will likewise carry into the merger. “There is a common culture between the two organizations, with both companies having long histories of designing competitive and innovative solutions. Together, we will have the opportunity to expand what Konecranes and Terex have built and become even stronger.”

Upon close of the transaction, the combined company will appoint a nine-member board of five Terex and four Konecranes directors. Konecranes Terex is expected to have approximately 32,000 employees worldwide, and will trade on the New York Stock Exchange and Nasdaq Helsinki.

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